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June 13, 2012 - 4:47 am

Chinchilla has growth still left. Once the projects start up out that way there will be plenty of growth.
Dalby still has a bit of a stigma about it after the floods (read Bank valuers are guarding their own backsides) great area out that way, and plenty of potential.

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June 12, 2012 - 4:17 am

Money spinning is is great in theory, but remember, Communism works in theory also….

If you want growth in NSW, the the only real place is the Hunter Valley region.
It's the only area in NSW where there is any REAL money being spent of Infrastructure and Government spending and there is amazing population growth taking place also.
600,000 people live there now, thats more than live in the ACT, Tasmania, the Gold Coast or Darwin, so it's very strong area.
And 160,000 of them drive from the Gosford and Wyong shire to work in Sydney each day!!!
The fact is, people want to live where there is value for money and lifestyle. Up that way your not really more than 10 mins away from water no matter where you live and its a very nice area, with QLD like infrastructure going in (thought out properly in other words).

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June 12, 2012 - 4:11 am

Dalby and Chinchilla are good areas outside of Toowoomba. Some amazing things happening out that way. $14Billion being spent on Infrastructure and Government spending.

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June 12, 2012 - 4:10 am

Good job then. Less overall monthly commitments will improve your finance servicing down the track.

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June 12, 2012 - 3:09 am

Hi Jnb

We have been busy in Mackay. It's a great place with plenty of reasons why it will continue to boom over the next few years to come.
You can get some good value there, just have to know where to look.
Like most of these towns, there are politics that get in the way, but you once you understand the games some like to play up there, you can still get a good deal.

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June 12, 2012 - 2:53 am

Saw a report recently saying that the medium house price in Perth had only changed by $1,000 since 2006.
Not saying that their isn't opportunity there, but with only 1,000,000 living over that side of the country and 21,000,000 odd living over this side, you can understand why it fluctuates so much.
I was out at Gregory Hills, SW Sydney the other day. Amazing how much is going on out there. Over 100,000 homes going in over the next 10 – 15 years or so. Good infrastructure and no stamp duty in NSW makes it good value.

I guess it comes down to the old rule. Look for where there is Infrastructure, Government spending and Population growth and that's where the gold will be.

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June 12, 2012 - 2:46 am

Hi Nooob

I think the issue for you straight up will be deposit. If you only have $20K saved, this will be hard to use until you get a bit more deposit.
The other issue is the sad state of Australia's legislation on investment advice. I have been a qualified Finance Broker as well as Licensed Real Estate Agent (only investment based) for over 16 years and over that time the Finance industry has had massive reforms in that now you can open your mouth about investment advice, where as sadly the Real Estate Industry has not done anything in regards to it's investment legislation. For example, I have to be a Licensed Financial Planner to advise anyone on even $10 worth of Shares, but I can be some 18 year old Real Estate certificate holder and tell you that the $1Mill property I have for sale is 'The best investment for you" .

The whole industry needs a shake up and quite franky I can't wait. It will hurt a lot of the archaic Real Estate offices and many will close their doors as it all gets to hard. This will weed the Men from the Boys.
Anyway, the fact is, you need to look at the numbers as they never lie. They will always tell you which way is best suited for you and then you can work out which way to go.

From the income numbers you have told us, your income tax is a big problem, and one which can big minimized buy buying the right mix of properties that will give you some great tax benefits as well as giving you goods growth and income.

I have dealt with Clients from all over Australia, and although states differ in their Real Estate laws, the facts still remain. You need to go with people who specialize in their field.

Be careful not to over annalize. The months you have spent researching are months you have spent not earning growth on a property, so keep it simple and don't do your head in with too much info.
Just find someone who has a good track record with  a company in the past. Thats the best way to find someone good.

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June 12, 2012 - 12:41 am

boybramley wrote:

Hi fellow investors. New to the website and this blog. PPOR is Sydney and I'm looking at Muswellbrook, Singleton as an investment. Strategy really is to buy well, undertake some quick TLC such as polished floor broads, new kitchen, and/or maybe new bathroom. Rent out asap as a +ve cash flow, or almost +ve. I've taken note of the varying contributors who suggest furnishing is a good idea, as many mine employees are new to area and may not have furniture. Looking at 3 bed houses, in good areas. I guess I am after the perfect investment, good potential for capital growth and as near to +ve cash flow as possible. Be keen to hear of anyone's views on this strategy and my proposed areas. Best David

Hi David

Welcome to the world of Property opinions…..!

Muswellbrook is a great place to invest, but buying and renovating can be hard, especially at a distance.
It's a very risky strategy and can cost you twice as much in time and $$$ as originally planned. There are plenty of experts out there preaching the positives of such ideas, but I have seen the process when it doesn't work so well, and it's not nice.
Call me conservative, but buying new and knowing what you get is a very solid strategy and one that can reap as good if not better results.

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June 12, 2012 - 12:34 am

KeyStrategies wrote:

Hi arope 99

I have a question for you – I was wondering

How would buying an investment property affect the First home savers account?

Would you still qualify under the scheme?

The answer is yes, so just invest first and make your deposit bigger, THEN go and buy your own place.

99, I think you're over thinking the whole process. It's simple, if you want to buy your own home, then understand that financially it's going to cost you in the long run. If you rent now, invest in the right areas, and you can delay your gratification, then you could even look to buy your own home outright.

This is a real cross road for you and this decision will change your life in MANY ways, so make it wisely.

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June 12, 2012 - 12:27 am

NHG wrote:

PISTORE wrote:

In summary, do what your parents did and you'll end up like them.

Haha,

Tried explaining that concept to my dad, he was understandably very upset.

He struggled to understand why I talked to my accountant for accounting advice, the lawyer for legal advice and the friend who owns 50+ properties for property investing advice instead of asking him.

Sad but true. We learn so much at school, but nothing on basic budgeting and life lessons.

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June 6, 2012 - 2:17 pm

Sorry Wake, would have to say steer away from Emerald. Great on face value, but Suncorp recently announced the will not insure there due to the flooding risk bein too high. This will have repercussions with the banks also as they reassess their risk, so just a bit too ugly up there now.
There are a lot of strong places to look at, but he elephant in the room here is your mortgage. You need to buy in an area where you’ll get stronger growth over the shorter term so you can sell up in a few years and pay a big chunk of your mortgage down. This will make it easier and easier to get your investment portfolio moving along.
There are some strong areas that can achieve this, with great rental returns also, so consider this option too.

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June 6, 2012 - 2:09 pm

Really depends what your ultimate goal is. Don’t get me wrong, capital growth is great to look for, but you need to be able to cash flow your purchase to get the growth, so cash flow is very important too”
Plenty of those numbers look good historically, they aren’t crystal balls, and really you need to be looking for areas that have the 3 key factors.
Infrastructure, government spending and population growth. These are the 3 key factors that drive growth and in the righ areas we have seen amazing income also, so you can cash flow the property comfortably enough to be able to hold onto it long enough to make the growth.

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June 6, 2012 - 2:01 pm

A couple of things.
Owning your own castle is overrated! Believe me when I say this as it is based on almost 2 decades of showing people how to get rid of this debt, or financial cancer as I call it.
Once you get a mortgage, and are on 1 income, forget it. Life will stop dead, you won’t be able to borrow any more money for investment as you’ll be mortgaged to the eyeballs and until you double your income or your wife goes back to work this won’t change.
Meanwhile 10 years will fly by and you will still have a mortgage on a home that may be worth a bit more, but the mortgage will be much the same.
Short term pain for long term gain. Renting for the next 3-5 years won’t kill you, but if you invest in the Right places, you could put yourself years ahead in terms of your mortgage size by using the money made from your investments as a bigger deposit.

Secondly, this is for all the alarmists out there. Sure, the world is having some financial problems, but I can assure you, there is PLENTY of money to be made in Australia over the next 3-5 years, if you know where to look.

In summary, do what your parents did and you’ll end up like them. Most of them have nothing now in their retirement because they wanted the great Australian dream, and now they’re up the creek without a paddle.
Do what the numbers are telling you to do, suck it up and continue renting for a while, while investing and you WILL reap the rewards.

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June 6, 2012 - 1:44 pm

Hi Glen
Just wondering why you were limiting yourself to areas like those you listed.
Depending on your income, you could look at far Bette options with your deposit.
It really depends on what you want, growth or income or both.
Those areas are ok, but they aren’t as good as others that will get you far better returns in a lot shorter time frame.

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June 6, 2012 - 1:35 pm

Should be able to get it through most any insurer these days. Ring who you currently use for your car/home insurance, they can probably do a good deal combining all the policies.

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June 6, 2012 - 1:33 pm

Adrian, just a side note. By the sounds of it, it seems that the purchase you are considering is heavily reliant on getting the QS report done to give you the cash flow you need to maintain the property???
If this is a concern, then the property you are looking at might not be ideal for your situation.
The old saying applies with property as with business, “Cash flow is King” so just make sure you’re not over committing and hoping the tax deductions will be your saviour.

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June 6, 2012 - 1:23 pm

Welcome to our wonderful country, best place in the world. Well we think it is.
Good forum to ask as many questions as you need with plenty of helpful people.
Happy to chat.

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April 17, 2012 - 10:53 am

KeyStrategies wrote:

Hi Everyone

The last 3 days has been interesting to observe – All the Doom and Gloom about the Norwich Park Mine closure has been all over the Media yet the announcement made by Anglo American Coal to Double its mine size in Moranbah on the same day has gone virtually unnoticed an as had almost NO press.

http://www.theaustralian.com.au/business/mining-energy/anglo-doubles-mine-plan-at-moranbah-south/story-e6frg9df-1226323271989

The same goes for all the conversations in a number of the threads and posts in the forum

Yes, the mine closure is a setback and for those that got caught in the buying Frenzy over the last 6 months or so they will pay a price (shortterm I believe) but lets remember that there are Four new mines open/opening, 8 existing mines are getting expanded, 36 new mines and 13 mine expansions are being considered…and ONE closes. Hardly a disaster for the region for either Dysart or Moranbah.

Good point and especially for those with company leases in Dysart, don't go jumping ship just yet. Ride out the lease and you might find things turn around. Investing is all about the highs and lows, you just have to be patient sometimes.

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April 3, 2012 - 2:24 am

I'm sorry to say, but the ship has well and truly sailed on Moranbah.
I wouldn't touch it with a 10 ft pole now as ALL the signs are saying that it's maxed out and is now on it's way back down to a more realistic position in the market.

Forget Moranbah, start looking at locations that are going to be the NEXT Moranbah. That's where there money to be made.

Emerald has plenty of potential and is still very affordable to get into. Don't make the mistake of looking at the past, look to the future and what it has in stall.

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March 19, 2012 - 10:53 pm

mattsta wrote:

i'd agree that going for mining towns in established areas would be the least riskiest option, as opposed to those where mining companies have just gone in

Remember, risk and return are relative